
Medicare Advantage Disbursement
The larger question is what defenses will apply to this lien? As for Medicare, since is a federal entity, they are able argue that they preempt our state law defenses such as the NC anti-subrogation provisions. What about these private insurance companies? How can a private company preempt state law? The answer is that I don't know. There is a lot of debate about this issue all over the country. States are allowed to regulate insurance companies. These are insurance companies that are providing Medicare type benefits. The type of benefits they provide doesn't change what they are- private entities. Therefore, they should not be able to preempt state law. Some of these Medicare Advantage companies are becoming very aggressive and are trying to take large portions of clients' recovery. This issue will likely be litigated soon.
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